Maureen opened a savings account and deposited 600.00 as principal. The account earns 9% interest, compounded monthly. What is the balance after 5 years?

Solution

Solution

Amount : 939.41

Solution steps

Translate the problem into an equation:

A = 600 (1 + \frac{0.09}{12})^{12 \cdot 5}

600 (1 + \frac{0.09}{12})^{12 \cdot 5} = 939.40861 \dots

Round to the nearest hundredth:

939.41

Amount : 939.41

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